Chenming Paper (000488) Company Research: Q3 Profit Continues to Repair Three Quarterly Report Performance Meets Expectations

Chenming Paper (000488) Company Research: Q3 Profit Continues to Repair Three Quarterly Report Performance Meets Expectations

Event: The company achieved revenue of 220 in 19Q1-3.

1.4 billion, down 6 every year.

3%; net profit attributable to mother is 10.

68 ppm, a year-on-year decrease of 57%; non-attributed net profit was 7.

51 ‰, a decrease of 65 per year.


Of which 19Q3 achieved income of 86.

66 ppm, an increase of 9 in ten years.

1%; net profit attributable to mother is 5.

58 ‰, a decrease of 19 per year.

9%; net profit after deduction is 4

48 ppm, a decrease of 30 per year.


  Wood pulp-based finished paper has strong profitability, and performance recovery continues.

At least, the price war of white cardboard in May 18 began, and the price of wood pulp finished paper entered the downward range. The price of cultural paper continued to fall to 19Q1 and then began to stabilize and rise.

During the downward price cycle, the company’s performance declined the most on average each year, but the decline in Q3’s performance decreased and narrowed.

9% (Q2 returns to the parent’s net profit of 10,000-71.


  On a month-on-month basis, the net profit of non-homing mothers increased by 18 in Q3.

2%, continuing the quarterly repair trend (Q1 / Q2 increased 33% from the previous quarter.

3% / 1133.


Wood pulp finished paper 19 years 3?
May price increase 200?
300 yuan / ton, encountered the impact of this year’s Daqing and holidays, 19H2 demand for good performance of cultural paper, the price increase in September continued to cash 100 yuan / ton, 19Q3 copper plate / double offset paper rose by 1 respectively.

4% / 0.


The price of raw material wood pulp has begun to decline since the end of 18, and continues to this day.

8% / 23.

5%, taking into account the proportion of needle and broadleaf pulp, the cost of cultural paper and wood pulp is expected to decrease by 20%, and the company’s profit will continue to increase.

The price of wood pulp in Q4 continues to decline, and it 北京桑拿网 is expected to decrease by 5% from the previous month. The price increase of cultural paper will begin to consolidate after the National Day.
  Margins are rising, and financial leasing business continues to shrink.

19Q1-3 company’s gross profit margin was 27.

2% a year -5.

7pct; single Q3 gross margin is 27.

5%, at least -3.

2pct, ring than -2.
8 points.

The quarter-on-quarter decrease in Q3 gross profit margin was mainly due to the higher self-sufficiency ratio of the company’s wood pulp, and the price of Q3 pulp continued to fall.

The company’s expense ratio increased slightly, but the financial expense ratio began to decline.
19Q1-3 company period expenses 21.

2%, ten years +1.

1pct; sales / management / financial expense ratios are 4 respectively.

4% / 6.

9% / 9.

9%, ten years +0.

4 / + 0.

7 / -0.


The company’s 19Q1-3 net margin was 5.

1%, five years -5.

6pct; single Q3 net profit is 6.

7% per year -2.

5pct, -0 ring.


The company has continued to reduce its financial leasing business, and its long-term receivables have been significantly reduced. Old business receivables are gradually included in the maturity income within one year.

19Q1-3 long-term receivables were -51 from the beginning of the year.

8%, non-current assets due within one year are +41 from the beginning of the year.


  The company initially expanded its financial leasing business, improved cash flow, optimized and improved asset structure, focused on the main business of deep plowing papermaking, and had strong profitability in cultural paper.

Expected 19?
21 years to achieve net profit attributable to mother.



5.3 billion, previous change -30.

2% / 30.

2% / 20.

7%, corresponding to PE7.

9X / 6.

0X / 5.


  Risk warning: the risk of fluctuations in raw material prices, the risk of fluctuations in paper prices, the risk of continued deterioration of cash flows, and the risk of impairment caused by the transfer of financial lease business.